Rodrik gives 20 commandments

At the end of the book, Rodrik gives 20 commandments (10 for economists and 10 for non-economists). They, of course, concern economic science and models. My favorite commandment in the top ten is 5. In the second, 8.

Ten commandments for economists

• 1. The economy is a set of models; keep their diversity.
• 2. It is always one of the models, not the one and only model.
• 3. Simplify your model enough to highlight specific factors and their mechanism of influence, but not so much as to discard key relationships between factors.
• 4. Unrealistic assumptions are the norm; unrealistic critical assumptions are not the norm.
• 5. The world is (almost) always in a second best state.
• 6. To connect the model with reality, explicit empirical diagnostics are needed, which is always more art than science.
• 7. Don't confuse consensus among economists with certainty about how the world really works.
• 8. It's OK to admit that you don't know anything about economics and politics.
• 9. Efficiency isn't everything.
• 10. To put your values in the place of the values of society means to abuse your knowledge.

Ten Commandments for Non-Economists

• 1. The economy is a set of models, there are no predetermined conclusions; don't listen to those who say otherwise.
• 2. Don't criticize the economist's model because of its premises; ask how the results would change if some of the unrealistic assumptions were replaced with more realistic ones.
• 3. Analysis requires simplicity; beware of the confusion that is masked by complexity.
• 4. Don't let math scare you; economists use it not because they are smart, but because they are not smart enough.
• 5. When an economist gives advice, ask why the model he uses applies to this case.
• 6. When an economist talks about "public welfare", ask what is meant by this term.
• 7. Be aware that economists may say different things in class and in public.
• 8. Economists do not pray to the market (at least not all), but they know better than you what exactly the market is capable of.
• 9. If you think all economists are the same, attend their seminar.
• 10. If you think economists are especially rude to non-economists, attend their seminar.

Grigory Bazhenov 2022-07-20